RALEIGH, N.C., May 21 /PRNewswire-FirstCall/ -- The U.S. Court of
Federal Claims issued a ruling on Monday, awarding Progress Energy $82.8
million for costs incurred as a result of the government's failure to
accept spent nuclear fuel from the utility. The sum covers the costs
incurred by Progress Energy to activate fuel storage facilities at plants
in the Carolinas and costs to transfer used nuclear fuel between plants for
storage.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c )
The lawsuit stemmed from the U.S. Department of Energy's failure to
open a federal repository for used nuclear fuel by Jan. 31, 1998, as
stipulated under federal law.
Since storage facilities were not opened by the appointed date,
Progress Energy had to revise plans to include onsite storage at its
nuclear power plants. Progress Energy originally filed the complaint
against the DOE asserting $91 million in costs incurred between January 31,
1998 and December 31, 2005 - the time period established by the court for
the complaint. Costs incurred after 2005 can be recovered in future claims.
The trial was conducted in November 2007 and April 2008.
Approximately 60 similar cases have been litigated between utility
companies and the federal government. Some of the suits have been settled.
A number of cases are still pending.
Progress Energy operates five reactors at four sites in the Carolinas
and Florida. Nuclear energy accounted for about 35 percent of the company's
total energy produced for customers in 2007. The company has the capability
to continue to store used nuclear fuel rods safely on site at each plant.
Meanwhile, the company continues to be a strong advocate for a permanent
federal storage solution for the nation's nuclear reactors.
"Nuclear energy is going to continue to be a critical part of our
ability to meet the needs of our growing service areas," said Bill Johnson,
Progress Energy's Chairman, President and CEO. "Nuclear power will be one
means of addressing global climate change while ensuring a reliable energy
supply for future generations, and as a country we must address the issue
of used nuclear fuel with a clear national policy based on scientific and
engineering facts."
The Department of Justice can appeal Monday's decision within the next
60 days. Given the likelihood of an appeal, no decision has been made
regarding the disposition of the potential court award.
Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250
energy company with more than 21,000 megawatts of generation capacity and
$9 billion in annual revenues. The company will observe its 100th
anniversary in 2008. Progress Energy includes two major utilities that
serve 3.1 million customers in the Carolinas and Florida. The company is
the 2006 recipient of the Edison Electric Institute's Edison Award, the
industry's highest honor, in recognition of its operational excellence. The
company also is the first utility to receive the prestigious J.D. Power and
Associates Founder's Award for customer service. Progress Energy serves two
growing areas of the country. For more information about Progress Energy,
visit the company's Web site at http://www.progress-energy.com.
Caution Regarding Forward-Looking Statements:
This document contains forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements, by their very nature, involve
assumptions, risks and uncertainties that could cause actual results or
outcomes to differ materially from those expressed in the forward-looking
statements. Any forward-looking statement speaks only as of the date such
statement is made, and we undertake no obligation to update any
forward-looking statement or statements to reflect events or circumstances
after the date on which such statement is made.
SOURCE Progress Energy
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http://www.progress-energy.com/
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